Ørsted ORSTED.CO
Ørsted is a Danish leader in renewable energy, dedicated to the development, construction, and operation of offshore and onshore wind farms, as well as energy storage solutions. Ørsted shows solid financial health (score 8.41) with low leverage (Net Debt/EBITDA 0.86), but its quality is weak (ROE -1.41%, cash conversion -85.32%) and earnings growth is deeply negative (-94.6%), which undermines its appeal despite 20.5% revenue growth.
Detailed metrics
Market and fundamental data as of the analysis date.
Full AI report
Generated automatically from the metrics, the macro context and the company's news.
Ørsted is a Danish leader in renewable energy, dedicated to the development, construction, and operation of offshore and onshore wind farms, as well as energy storage solutions. Ørsted shows solid financial health (score 8.41) with low leverage (Net Debt/EBITDA 0.86), but its quality is weak (ROE -1.41%, cash conversion -85.32%) and earnings growth is deeply negative (-94.6%), which undermines its appeal despite 20.5% revenue growth.
Score by category
| Category | Score |
|---|---|
| Financial health | 8.4 |
| Quality / Moat | 2.8 |
| Valuation | 4.7 |
| Growth | 5.0 |
| Dividend | 1.4 |
| Momentum | 6.5 |
| Risk & Context | 7.7 |
OVERALL SCORE: 5.3/10
Context and risks
The rise in 10-year yields (5.17%) increases the cost of capital for capex-intensive projects like Ørsted's offshore wind farms, whose free cash flow conversion is negative. The long duration of its cash flows amplifies rate sensitivity, though low leverage (Net Debt/EBITDA 0.86) limits the impact.
News considered in the analysis
- Ørsted receives final opinion regarding taxation of UK offshore wind farms — Opinión fiscal favorable del Reino Unido sobre dos parques eólicos marinos; reduce la exposición fiscal y mejora la visibilidad de los flujos de caja de estos activos.
- Orsted Gets Commission Backing in U.K. Tax Case — Respaldo de la Comisión en el caso fiscal del Reino Unido; refuerza la posición de Ørsted y reduce el riesgo de un desenlace adverso.
- Ørsted Gets Favorable Tax Opinion on Two UK Offshore Wind Farms — Confirmación de una opinión fiscal favorable; mitiga un riesgo regulatorio concreto y apoya la rentabilidad de los activos británicos.
- 3 European Renewable Energy Stocks Riding The Grid Spending Boom — Artículo genérico sobre el auge del gasto en redes; menciona a Ørsted como beneficiaria, pero no aporta información nueva específica.
- ORLEN and partners launch Baltic Energy Initiative — Iniciativa de ORLEN y socios; no menciona a Ørsted y no tiene impacto directo en su negocio.
Verdict: Hold; the favorable UK tax resolution reduces one risk, but return on capital and cash generation remain very weak.
Main risk: Negative free cash flow conversion (-85.32%) and negative ROE (-1.41%) indicate the business is not generating sufficient returns on invested capital, a structural risk to long-term value creation.
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